How a Financial Power of Attorney Controls Your Money and Property in Nebraska

Short answer: In Nebraska, a properly drafted financial power of attorney (POA) can give your agent broad authority to manage bank accounts, pay bills, handle investments and taxes, buy or sell property, deal with government benefits, and take other money-related actions if you become unable to manage your finances. The exact powers depend on the language you sign, any limits you set, and Nebraska’s statutes.

Detailed answer — what authority an agent can have under Nebraska law

A financial power of attorney is a legal document in which you (the principal) appoint another person (the agent or attorney-in-fact) to act on your behalf for financial matters. Under Nebraska law, a POA can be written to be durable (stays in effect if you become incapacitated) or limited to take effect only while you are still capable. The Uniform Power of Attorney Act, as enacted in Nebraska, governs how those documents operate and how third parties should treat them. See Nebraska Revised Statutes, Chapter 30 for the state’s provisions: https://nebraskalegislature.gov/laws/statutes.php?chapter=30.

Common powers you can grant an agent include (but are not limited to):

Banking and cash management: Open, close, and access bank and brokerage accounts; deposit and withdraw funds; endorse checks; and manage electronic transfers.
Bill payment and household finances: Pay recurring bills, mortgage or rent, utilities, and household expenses.
Investment decisions: Buy, sell, and manage stocks, bonds, mutual funds, and other investments; hire or fire investment advisors (if the POA authorizes this).
Real estate transactions: Buy, sell, lease, mortgage, or otherwise manage real property on your behalf, if the POA expressly grants that authority. Note: many real estate transactions require notarization or additional formalities.
Tax matters: Prepare, sign, and file federal and state tax returns; receive tax information; and deal with tax authorities.
Insurance and benefits: Handle insurance claims and premiums, enroll or claim benefits, and manage Social Security or VA communications if authorized.
Business and entity management: Operate or sell an interest in a business, sign contracts, or manage corporate accounts if your POA grants business authority.
Personal property and safe deposit boxes: Access, manage, and sell personal property and access safe deposit boxes when the POA permits it and applicable bank rules are followed.
Digital assets: Manage online accounts and digital property to the extent the POA covers digital assets or provides general access authority.

Key points about those powers:

Grant by grant: The agent only has the powers you grant in the POA. If you do not list a power, the agent typically cannot act in that area.
Durability: A POA is durable if it includes language saying the agent’s authority continues if you become incapacitated. Absent that language, the POA may end when you lose capacity.
Express limits: You can limit or expand authority. For example, you can allow an agent to manage bank accounts but prohibit selling the house, or you can authorize gifting or creation/revocation of trusts only if you say so explicitly.
Real estate formalities: Some actions, especially those transferring or encumbering real property, may require notarized signatures, specific statutory wording, or additional documents. Check with your attorney or title company before using a POA for real estate.

Agent duties and important safeguards

When an agent acts, Nebraska law and general fiduciary principles require the agent to act in your best interest. Typical duties include:

Act only within the authority provided by the POA and follow any instructions in the document;
Avoid conflicts of interest and not use the position for personal gain beyond what you allow;
Keep accurate records and keep funds and property separate from the agent’s own;
Keep you informed and preserve your estate when possible;
Act with care, competence, and diligence.

Those duties can be enforced by courts if an agent breaches them. If a bank or other third party refuses to accept a POA, Nebraska law provides guidance for resolving disputes; the statutes in Chapter 30 also address third-party liability and defenses.

How to make sure a POA will work when needed

Sign the POA using the formalities required by Nebraska (witnesses and/or notary). Notarization is commonly required or strongly recommended, and many banks insist on a notarized document.
State clearly whether the POA is durable (continues during incapacity) or springing (only effective upon a particular event). Durable language is typically phrased as “this power of attorney shall not be affected by subsequent incapacity.”
Be explicit about real estate, gifting, and trust powers if you want the agent to have them.
Provide the agent with copies and tell banks, accountants, and advisors about the POA in advance.

For statutory details and definitions, review the Nebraska statutes in Chapter 30: https://nebraskalegislature.gov/laws/statutes.php?chapter=30. If you plan to use a POA for specific actions (for example, real estate transfer or business operations), check the related statutory sections or ask an attorney to confirm any extra requirements.

When to get an attorney and what to bring

Consider consulting an attorney when:

Your finances are complex (business ownership, substantial investments, multiple properties);
You want to grant broad authority including gifting, creating trusts, or selling major assets;
You want to tailor successor agent provisions, oversight, or reporting requirements;
You anticipate family conflict or expect third parties to scrutinize the POA.

If you meet an attorney, bring a list of assets and accounts, the names and contact information of people you trust, any existing estate planning documents, and notes about how you want decisions made.

Helpful hints

Pick a trustworthy, organized agent who can manage records and communicate clearly.
Make durable language explicit so the POA continues if you become incapacitated.
Limit or expand powers in writing — be specific about real estate, gifts, trusts, and business authority.
Tell banks, investment firms, and insurers where you keep the original document and provide certified copies if they request them.
Keep a contemporaneous paper and digital copy accessible to your agent and family members.
Consider successor agents in case your first choice cannot serve or becomes impaired.
Review and update your POA after major life events (marriage, divorce, moves, major asset changes).
If a third party refuses to accept the POA, document the refusal and seek legal help; Nebraska statutes offer mechanisms to enforce a valid POA.

Disclaimer: This article explains general principles about financial powers of attorney under Nebraska law and provides practical guidance. It is not legal advice and does not create an attorney-client relationship. For advice tailored to your situation, consult a licensed Nebraska attorney.